`
Popular Vehicles & Services Limited–IPO DETAILS
IPO Date |
Mar 12, 2024, to Mar 14, 2024 |
Price Band |
₹280 to ₹295 per share |
Lot Size |
50 Shares |
Issue Size |
₹601.55 Cr. |
Allotment Date |
15 March 2024 |
Listing Date |
19 March 2024 |
Company Overview
Established in 1983, Popular Vehicles and Services Limited specializes in automobile dealerships within India. Popular Vehicles offers comprehensive services spanning the entire vehicle ownership lifecycle, encompassing new and preowned vehicle sales, maintenance, spare parts distribution, driving schools, and sales of third-party financial and insurance products.
The company's operations are segmented into three categories:
Passenger vehicles, including luxury vehicles,
Commercial vehicles, and
Electric two-wheeler and three-wheeler vehicles.
Presently, Popular Vehicles operates through an extensive network comprising 59 showrooms, 126 sales outlets and booking offices, 31 pre-owned vehicle showrooms and outlets, 134 authorized service centres, 40 retail outlets, and 24 warehouses. These facilities are spread across 14 districts in Kerala, eight districts in Karnataka, 12 districts in Tamil Nadu, and seven districts in Maharashtra. In addition to showrooms, the sales outlets and booking offices facilitate sales, while the retail outlets handle the sale and distribution of spare parts and accessories. In FY 2023, the company serviced a total of 791,360 vehicles, comprising 5,212 luxury vehicles, 163,013 commercial vehicles, 1,918 electric two-wheeler vehicles, and 857 electric three-wheeler vehicles. These services were provided through 130 authorized service centres located across the company's dealerships.
Objective of the IPO
Here are a few quick reasons why company is going public:
The repayment or prepayment, whether in full or in part, of certain borrowings obtained by the company and some of its subsidiaries, namely, VMPL, PAWL, PMMIL, KGPL, KCPL, and PMPL.
Utilization for general corporate purposes.
Company Financials
Period Ended |
Total Assets |
Total Revenue |
Profit After Tax |
Net Worth |
Reserves and Surplus |
Borrowing |
31-Mar-21 |
1118.94 |
2919.25 |
32.46 |
246.00 |
233.46 |
353.04 |
31-Mar-22 |
1263.29 |
3484.20 |
33.67 |
279.89 |
267.34 |
371.91 |
31-Mar-23 |
1503.78 |
4892.63 |
64.07 |
343.04 |
330.50 |
505.01 |
Key Performance Indicator
Market Cap. (Cr.) |
2,100.28 |
EPS (Rs) |
11.25 |
ROE |
10.42% |
Debt/Equity |
1.99 |
ROCE |
8.83% |
P/E |
26.22 |
Pros
Extensive expertise within the automobile industry coupled with robust partnerships with leading OEMs.
Effective market penetration backed by innovative marketing strategies.
A comprehensive business model guaranteeing stability and enhanced margins.
Proven ability to identify and capitalize on both organic and inorganic growth opportunities.
Consistent track record of profitable financial performance and continuous expansion.
Cons
The company's business prospects could be significantly affected by non-renewal, termination, or any significant adverse changes to its dealership agreements with OEMs.
Additionally, the pending approval from the Central Government for appointing John K. Paul as a Whole-time Director is an ongoing concern.
Furthermore, heightened competition among automotive dealerships, both online and offline, is exerting pressure on the company's profit margins stemming from vehicle sales and related operations.
How to Apply for this IPO
1. Go to https://ipo.adityatrading.in/
2. Enter your Client ID
3. Enter the OTP received in your registered mobile number.
4. Choose the IPO and click on apply button.
5. Enter the UPI ID, Quantity, and Cut off the price.
6. Click on submit button
7. Confirm the mandate request received on your phone by entering the UPI Pin.
You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”
DISCLAIMER |
This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.